PRESQUE ISLE — The University of Maine System’s $688.9 million operating budget for next year has been approved amid what UMS called “unprecedented financial uncertainty.”

However, trustees have cautioned that cuts could be coming if federal funding continues to be reduced and the Maine Legislature does not provide state appropriation.

The budget was unanimously approved by trustees during a regular meeting at the University of Maine at Presque Isle over the weekend.  

The budget includes a tuition increase of 3% for Maine students. The budget assumes modest enrollment growth and a 4% increase in state appropriation — proposed by Governor Mills. UMS is also budgeting $10 million in expected savings from retirements and vacancies in the school system.

Residence hall occupancy is budgeted at 93% — the same as last year.

However, the Maine Legislature’s continuing service budget passed in March “flat-funded” UMS, allocating the same amount of funding to the university system for fiscal year 2026 and 2027 as the previous year.

Additionally, millions in federal funding to UMS has been terminated or paused under the current administration.

UMS says they are advocating — along with partners including the Maine Education Association — for funding increases totaling $13.58 million to be added into the state’s second budget bill.

“Our public universities provide the best value proposition for Maine’s students and taxpayers. When confronted with challenges, our System has made the difficult decisions necessary to deliver a balanced budget and affordable, high-quality education to Maine families. We need the Legislature to do its part to support our students and stave off painful workforce reductions,” said Board Chair Trish Riley. “Now more than ever, Maine must invest in its most powerful and proven engine of economic mobility.”

UMS said this funding is essential in order to mitigate tuition increases to 3%.

With the increases, the average cost for in-state students to attend one of Maine’s public universities — including tuition, mandatory fees, and room and board — totals $22,944 for next year.  

UMS said this is still an affordable cost to attend school in New England. The estimated direct cost for students in Massachusetts to attend the University of Massachusetts next year totals $35,815.

UMS said state support has not kept pace with inflation since 2008, and that the university system has had to delay $1.8 billion in deferred maintenance. UMS said it has also initiated a hiring freeze, left hundreds of positions vacant and more to maintain “affordable student access to postsecondary educational opportunity.”

According to UMS, the system dedicates about two-thirds of its budget to compensating its nearly 13,000 faculty, staff and student workers.

UMS Vice Chancellor for Finance and Strategic AI Integration Ryan Low told trustees the board would make adjustments at its October meeting if external funding and fall enrollment did not align with the approved budget.  

“Every year is challenging but this year we are facing unprecedented uncertainty,” said Low. “Even beyond what we experienced during the pandemic.”

According to UMS, this budget for the Fiscal Year 2026 is the first in the university system’s history where two students were able to cast votes.